CONTRACT USER guide 2022 for Natural Gas Supply Management -Non Firm 11-10-201.pdf

Contract Name: Natural Gas Supply & Management Contract Number: 505ENT-M22-NATURALGASWI-00

Date: November 8, 2021

CONTRACT USER’S GUIDE

Scope:

This is a mandatory contract to provide a reliable natural gas supply and management services for the listed facilities in this contract.

The natural gas supply for the state’s locations shall be delivered on a secondary firm or interruptible basis if secondary firm is not available. Fixed basis pricing shall be provided for a single 1-year term.

Contract Term:

This contract has an initial term starting January 1, 2022, through December 31, 2022.

Initial contract term is for one (1) year. At the end of the initial contract period, Division of Facilities Development reserves the right to renew the contract for four (4) additional one (1) year terms. DFD & the Supplier(s), upon mutual agreement may renew the term.

The State reserves the right to negotiate the pricing and terms at the time of renewal or re-bid upon completion of each one-year term.

Under Wisconsin Statutes, the State is authorized to enter into contracts and extend those contracts to Wisconsin municipalities.

Contract Audits and Credits:

The State reserves the right to audit any report submitted by the Contractor for accuracy and to identify any pricing problems. If pricing problems are identified by the DOA Contract Manager, the Contractor shall issue credits to DOA within thirty (30) calendar days of notification of the problem.

During the Contract period, DFD reserves the right to eliminate individual facilities from the Contract due to sale, closure, or lease of the plant.

As required by Wisconsin Statutes, continuance of a contract beyond the limits of funds available shall be contingent upon appropriation of the necessary funds, and the termination of the contract by lack of appropriations shall be without penalty.

Contract Flexibility:

The State reserves the right to add/delete city gate delivery locations, change pipeline capacity requirements and end users during the contract term to meet the needs of the State.

To make additions, the State shall adhere to the following procedure:

Step 1 The location shall be offered to currently award contractor(s), beginning with the contractor with the lowest total delivered per dekatherms cost based on secondary firm capacity or interruptible if secondary firm is not available for the area associated with the location.

Step 2 If no contractor from Step 1 accepts the location, the location shall be offered to all currently awarded contractors and awarded to the lowest cost contractor willing to make delivery to that location.

Step 3 If no contractors quote on the location, no award shall be made.

FIRM PRICES:

Pricing must remain firm for the Initial contract term.

At the end of the initial term, DOA/DFD will request a price quote for all locations for the 2nd term. The State shall be the sole judge as to continue this contract or rebid the contract in the best interest of the State.

The total Price Guarantee: The vendor shall guarantee the total cost stated for each area for the operating conditions stated.

PURCHASE ORDERS/INVOICES:

There shall be no formal Purchase Order Number issued for this contract. Use the contract number as the Purchase Order Number.

Contractor shall submit a copy of the original invoice to Division of Facilities Development.

TECHNICAL REQUIREMENTS

Account Management:

a. Vendor shall designate an account manager to provide natural gas management services.

The account manager will serve as the State of Wisconsin’s point of contact for the vendor.

b. Bidder shall provide access to a secured web–based portal for the State to access all account specific information and reports.

Examples of accounts specific reports are:

i. Monthly analysis reports

ii. Daily usage histories

iii. Monthly usage and peak analysis

iv. Hedge positions

v. Budget/Spending reports

Examples of market-based information shall include:

vi. Weekly Market summary

vii. Natural Gas Update

viii. Natural Gas Futures Update

ix. Historical NYMEX pricing

c. State if vendor provides annual energy conferences in Wisconsin covering the latest information on energy markets, regulatory and legislative changes, and product /service developments. State if vendor provides live webinar presentations covering the latest information on energy markets, regulatory and legislative changes, and product /service developments.

Customer Service:

a. Provide online account management information and access.

b. Vendor’s participation through phone or face to face meetings for quarterly review.

c. Provide 24 hours/day, 7 days/week availability.

d. Handling constraint days issued by the pipeline and the utility.

e. Bidder shall respond to all telephone, e-mail within 24 hours.

f. Awarded vendors shall provide emergency contact information. This information shall include the name of the contact person(s) and their telephone numbers.

g. News releases pertaining to the RFB or to the acceptance, rejection, or evaluation of bids shall not be made without the prior written approval of the State.

Delivery Options (secondary firm)

All facilities have alternate fuels capability.

Invoicing

a. A detailed and itemized invoice for each utility meter listing all transactions for the month. Itemized items shall include the following:

1) First of month spot price

2) First of month fixed price (commodity and/or basis)

3) End of month pricing for variances from first of month nominations.

4) Utility balancing and or cash out fees

5) Utility distribution fees

6) Any additional fees that may apply

b. State requires a single consolidated summary invoice detailing all-natural gas supplies and services for all state gas accounts served by the vendor in this contract. It shall include all accounts served.

c. All invoices, except areas 9 & 10 (Xcel) shall be based on actual usage and not nominated usage.

d. Invoices should be received no later than the 10th business day of the month following delivery via mail & e-mail.

e. All Xcel accounts shall be billed on nominations with the imbalance shown in the utility statement.

Natural Gas Management:

a) Provide established natural gas services to manage state’s risk and exposure to natural gas price volatility.

b) Manage imbalances by forecasting usage daily and adjusting deliveries accordingly based on the daily forecasts.

c) Vendor shall be responsible for monthly and daily nominations. State shall provide daily nominations to the vendor by the 20th day of the month before the delivery month.

d) In the absence of a specific nomination from the State, vendor shall establish monthly and daily nominations based on historical usage and current consumption rates.

e) Vendor shall be responsible for balancing all gas flows to ensure that the State receives required natural gas supplies and to minimize balancing/cash out fees.

f) Vendor will not be permitted to suspend secondary firm deliveries of gas due to an economic constraint.

g) UW Madison (Charter and Walnut Street Heating Plants):

UW Madison purchases steam from the West Campus Cogeneration Facility (WCCF) primarily during the months of January, February, March, April, October, November, and December. The amount of steam purchased may be as much as 50% of the plant’s production for a day or about 5,000 dth of natural gas per day. The load profile provided to quote does not include the effect of steam purchases from WCCF.

The WCCF unit is dispatched daily by MISO as a peaking unit, and when this unit is online, UW Madison purchases steam from WCCF. The State of Wisconsin will provide notice when WCCF is expected to run and how much steam UW Madison will purchase for a given gas day.

The notice provided by the State of Wisconsin may be day ahead or day of consumption.

Notice for a given day may change multiple times based on MISO dispatching.

The vendor shall be responsible to handle intraday nominations and changes in gas forecasts/nominations`` on short notice. Vendor must have the capability to balance, reduce /increase gas deliveries on short notice and handle large gas variances between both Walnut and Charter Street heating plants and the rest of the State of Wisconsin accounts behind Madison Gas & Electric.

There may be times when UW Madison is shut down for a short period (one or more months) and the vendor may be required to sell the State of Wisconsin’s fixed price basis positions.

UW Madison, Walnut Street Heating Plant (WSHP) is expected to operate in hot standby and not as a baseload plant. Based on operational needs this may change and the Vendor shall be expected to provide natural gas on short notice.

Pricing:

a. All natural gas deliveries to the identified meters shall be secondary firm or interruptible when secondary firm is not available with the exception of Prairie Du Chien Correction Institution where 10 MMBtu/day of primary firm capacity at the Prairie Du Chien city gate is required.

b. Utilization of available alternate fuels as a substitute for natural gas may be made due to pipeline and/or utility curtailment or constraint and not economic constraint.

c. Vendor shall provide NYMEX last day settlement (LDS) basis pricing.

d. The term to be provided is for January 1, 2022, through December 31, 2022.

e. Basis pricing shall be quoted using secondary firm or interruptible if secondary capacity is unavailable and shall include all costs to the city gate (i.e., fuel, taxes vendor margin).

f. The vendor will use the load to quote provided by the state for each area. Other costs such as utility cash out and/or balancing and end of month pricing for variances for monthly nominated gas versus actual monthly consumption will be shown separately.

g. Identify & explain how all costs associated with utility or pipeline balancing/cash out are applied. Identify if vendor will be using pipeline or utility services for balancing or cashing out the states daily and/or monthly imbalances.

h. Identify any other costs, not identified above such as hedging, management fees, administration fees, and additional charges for consolidated billing, associated with services requested in this RFB that have not been covered elsewhere in this cost proposal.

i. Fixed: Shall mean a constant price portion of the contract term.

j. Vendor shall provide a monthly price confirmation by the 10th business day of the delivery month listing the first of the month price and volumes for each gas account served by the vendor.

k. Should the contractor’s cost decrease during the term of the contract, the contractor shall immediately notify the State. Such cost decreases shall become effective to the State the same date the decrease is effective to the contractor.

FACILITIES AREAS & UTILITY:

Area 1: Utility: MG&E Pipeline(s): ANR, NN

Alternate-Fuel

U.W Madison Charter Street Fuel oil

U.W Madison Walnut Street Fuel oil

Capitol Heat & Power Fuel oil

Oak Hill Correctional Institution Fuel oil

Mendota Mental Health Institution Fuel oil

Area 2: Utility: MG&E Pipeline(s): NN

Prairie du Chien Correctional Institution Fuel oil

Area 3: Utility: WPS Pipeline(s): ANR, Guardian

UW-Green Bay Fuel oil

Green Bay Correctional Institution Fuel oil

Kettle Moraine Correctional Institution Propane

Lincoln Hills Schools Propane

UW-Oshkosh Fuel oil

Oshkosh Correctional Institution Propane

UW-Stevens Point Fuel oil

Winnebago Mental Health Institution Fuel oil

UW-Stevens Point - Wausau Fuel oil

Sanger Power Correctional Center Propane

Area 4: Utility: WEGO Pipeline(s): ANR, Guardian, NN

UW-Parkside Fuel oil

UW-Parkside Housing Fuel oil

Southern Wisconsin Center Fuel oil

UW-Whitewater Fuel oil

Wisconsin School for the Deaf Fuel oil

Racine Correctional Institution Fuel oil

Racine County Court House Fuel oil

Racine County Jail Fuel oil

Milwaukee County House of Correction Fuel Oil

Fox Valley Technical College Fuel Oil

Area 5: Utility: WGC Pipeline(s): ANR, Guardian, NN

UW-Milwaukee Fuel oil

Wisconsin Veterans Home Fuel oil

Red Granite Correctional Institution Fuel oil

Milwaukee County Domes Fuel Oil

Area 5A: Utility: WGC Pipeline: Viking

Stanley Correctional Institution Propane

Area 6: Utility: WGC Pipeline(s): NN

Wisconsin Secure Program Facility Fuel Oil

Jackson Correctional Institution Propane

Area 7: Utility: Alliant Pipeline(s): NN

UW-Platteville Fuel oil

Columbia Correctional Institution Propane

New Lisbon Correctional Institution Fuel Oil

Sand Ridge Secure Treatment Center Fuel Oil

Area 8: Utility: Alliant Pipeline(s): ANR

Fox Lake Correctional Institution Propane

Taycheedah Correctional Institution Fuel Oil

Waupun Correctional Institution Fuel oil

Wisconsin School for the Visually Handicapped Fuel oil

Area 9: Utility: Xcel Pipeline(s): NN

UW-La Crosse Fuel oil

Area 10: Utility: Xcel Pipeline(s): Viking

UW-Eau Claire Fuel oil

UW -Stout Fuel oil

Northern Wisconsin Center Fuel oil

Area 11: Utility: SWL&P Pipeline(s): NN

UW-Superior Fuel Oil

Area 12: Utility: St. Croix Gas Pipeline(s): NN

UW-River Falls Fuel oil

FACILITIES & LOCATION:

FACILITY NAME LOCATION

1 UW Madison Charter ST. 117 N. Charter St, Madison, WI 53705

2 UW Madison Walnut ST. 505 N. Walnut St, Madison, WI 53705

3 Capitol Heat & Power Plant 624 East Main Street, Madison, WI 53703

4 Mendota Mental Health Institution 301 Troy Drive, Madison, WI 53704

5 Oak Hill Correctional Inst. 5200, County Rd. M, Oregon, WI 53575

6 Prairie Du Chien Correctional Institution 500 Parish Street, Prairie Du Chien, WI 53821

7 Waupun Correctional Institution 400 S. Drummond Street, Waupun, WI 53963

8 UW - Green Bay 3260 Gershwin Lane, Green Bay, WI3260

9 Green Bay Correctional Institution 2833 Riverside Dr. Green Bay, WI 54301

10 Kettle Moraine Correctional Institution W9071 Forest Dr. Kettle Moraine, WI 53010

11 Lincoln Hills Schools W4380 Copper Lake Ave. Irma, WI 54442

12 Oshkosh Correctional Institution 1730 W. Snell Rd. Oshkosh, WI 54901

13 UW - Oshkosh 1010 Woodland Ave. Oshkosh, WI 54901

14 UW-Stevens Point 1925 Maria Dr. Stevens Point, WI 54481

15 Winnebago Mental Health Institution 1305 South Dr. Winnebago, WI 54985

16 Sanger Power Correctional Center N8375 County Road U, Oneida, WI 54155

17 UW-Parkside 900 Woodland Ave. Kenosha, WI 53144

18 UW-Parkside Housing 4029 Outer Loop Rd. Kenosha, WI 53144

19 Southern Wisconsin Center 2145 Spring St. Union Grove, WI 53182

20 Racine Correctional Institution 2019 Wisconsin St. # 2, Sturtevant, WI 53177

21 UW-Whitewater 734 W. Lauderdale Dr. Whitewater, WI 53190

22 Wisconsin School for the Deaf 309 West Walworth Ave. Delavan, WI 53115

23 Wisconsin School for the Visually Handicapped 1700 West State Street, Janesville, WI 53545

24 UW-Milwaukee 3359 N. Downer Ave, Milwaukee, WI 53201

25 Wisconsin Veterans Home N2665 County Road QQ, King, WI 54946

26 Stanley Correctional Institution 35528 County Road X, Stanley, WI 54768

27 Wisconsin Secure Program Facility 1011 Morrison Drive, Boscobel, WI 53805-1000

28 Jackson Correctional Institution N6500 Haipek Rd. Black River Falls, WI 54615

29 Columbia Correctional Institution 2925 Columbia Dr. Portage, WI 53901

30 Fox Lake Correctional Institution W10237 Lake Emily Road, Fox Lake, WI 53933

31 New Lisbon Correctional Institution 2000 Progress Road, New Lisbon, WI 53950

32 Sand Ridge Secure Treatment Center 1111 North Rd. Mauston, WI 53948

33 Taycheedah Correctional Institution N7139 Cty. Hwy. K, Fond du Lac, WI 54935

34 University of Wisconsin - Eau Claire 522 W Clairemont Ave. Eau Claire, WI 54701

35 Northern Wisconsin Center 2820 E. Park Ave. Chippewa Falls, WI 54729

36 University of Wisconsin - La Crosse 1725 State Street, La Crosse, WI 54601

37 University of Wisconsin - Platteville Greenwood Ave, Platteville, WI 53818

39 University of Wisconsin - River Falls 410 South 3rd St., River Falls, WI 54022

40 University of Wisconsin - Stout 9th Avenue & 3rd Street, Menomonie, WI 54751

41 University of Wisconsin - Superior 1800 Grand Avenue, Superior, WI 54880

42 Racine County Court House 730 Wisconsin Ave, Racine, WI 53403

43 Racine County Jail 717 Wisconsin Ave, Racine, WI 53403

44 Milwaukee County Domes 524 S. Layton Blvd. Milwaukee, WI 53215

45 Milwaukee County House of Correction 8885 S. 68th St. Franklin, WI 53132

46 Fox Valley Technical College 1825 N. Bluemound Dr. Appleton WI 54914-1643